Mileage rate increases slightly

The reimbursement rate for federal employees who use their personal vehicles for official business is increasing slightly effective today, a reflection of higher gas prices.

The most common rate, for use of a personal automobile, is rising to 55.5 cents per mile from the former rate of 51 cents per mile. The General Services Administration, which sets the rates government-wide, meanwhile also increased the rates for using a personal motorcycle, to 52.5 cents from 48 cents. Federal employees who use their own airplanes for official business now will be reimbursed at the rate of $1.31 per mile rather than $1.29.

The rates had been at their former levels since January 2011 even though in the meantime the IRS increased a rate used for certain tax deductibility purposes to 55.5 cents per mile. The federal employee reimbursement rate commonly mirrors the IRS deductibility rate although they are not formally connected.

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